National Grid Corporation of the Philippines (NGCP) announced lower transmission charges for May 2026 electric bills following declines in both transmission wheeling rates and ancillary service (AS) charges during the April billing period.

According to NGCP, the overall average transmission rate fell by 8.80% to PHP 1.5983 per kilowatt-hour (kWh), down from PHP 1.7526/kWh in March.

The grid operator said the reduction was driven by decreases in both transmission wheeling rates and ancillary service costs.

Transmission wheeling rates — or the charges collected by NGCP for delivering electricity through the transmission network — declined by 14.16% to PHP 0.6028/kWh from PHP 0.7022/kWh in the previous billing period.

“For the May 2026 electric bill of the end consumers, NGCP charges only 60 centavos per kWh for the delivery of its services,” NGCP said.

Meanwhile, average ancillary service rates decreased by 5.02% to PHP 0.8088/kWh from PHP 0.8516/kWh in March.

Ancillary services refer to reserve and balancing services sourced from the Reserve Market and bilateral contracts to help stabilize the power grid during supply-demand imbalances.

Despite the reduction, NGCP noted that ancillary service charges still account for the bulk of transmission-related costs passed on to consumers.

The company also clarified that it does not earn from fluctuations in ancillary service prices.

“NGCP does not earn from AS rates, as these are remitted directly to generating companies, and it does not benefit from any movement in their prices,” the company said.

NGCP explained that AS charges are pass-through costs paid to generating companies that provide reserve capacity and grid stabilization services.

The lower transmission charges come amid ongoing efforts to manage electricity costs during a period of elevated reserve market activity and tighter supply-demand conditions in the power sector.

As reserve-related costs continue to influence electricity bills, will improving power supply conditions help further reduce ancillary service charges in the coming months?

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